This is an investment program that enables investors to invest directly into a known property at an assumed cost. We discover a property and present it to investors, estimate the cost of providing the facilities and other amenities. It is sold in a unit called (sqm) square metre.
Cost of the land = N1,000,000
Road network and interlocking = N500,000
Electrification = N250,000
Water = N250,000
Documentation = N500,000
Commission = N500,000
Company Profit = N1,000,000
N4,000,000 = N6,700 per square 600
FEATURES OF DREIP
(1) Accessible to all class of investors, example: Civil Servant on a minimum wage of N30,000 can invest on monthly basis.
(2) Payment streams can be lump sum, it can be monthly, and it can be quarterly or yearly.
(3) The return on investment is going to be huge because of the swiftness on the development of the said property.
(4) Minimum duration of investment is three years.
(5) Investment window is one year six month that is (the offer period)
BENEFITS OF DREIP
· It provides hedge against future business failures for entrepreneur and business men.
· Good return on investment due to swiftness on the development of the said property.
· It serves as channel of diversification of assets which can provide means of fall back in periods of economic down-turn.
· It also provides opportunity for future business.